This problem looks longer than it is. I only need the answer to part 2. Thank you!

P8-46a On January 3, Jose Rojo, Inc. paid $224,000 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $700 transportation charges, $100 insurance for the equipment while in transit, $12,100 sales tax, and $3,100 for a special platform on which to place the equipment in the plant. Jose Rojo, Inc. management estimates that the equipment will remain in service for five years and have a residual value of $20,000. The equipment will produce 50,000 units the first year, with annual production decreasing by 5,000 units during each of the next four years (i.e. 45,000 units in year 2; 40,000 units in year 3; and so on for a total of 200,000 units). In trying to decide which depreciation method to use, Jose Rojo, Inc. requested a depreciation schedule for each of the three depreciation methods (straight-line, units-of production, and double-declining-balance). Requirements 1. For each depreciation method, prepare a depreciation schedule showing asset cost, depreciation expense, accumulated depreciation, and asset book value. For the units-of production method, round depreciation per unit to three decimal places. Req. 1 Straight-Line Depreciation Schedule Depreciation for the Year ASSET DATE Year 0 COST DEPRECIATIONDEPRECIABLE DEPRECIATION ACCUMULATED RATE COST = EXPENSE DEPRECIATION $240,000 BOOK VALUE $240,000 Year 1 1/5 $220,000 $ 44,000 $ 44,000 196,000 Year 2 1/5 220,000 44,000 88,000 152,000 Year 3 1/5 220,000 44,000 132,000 108,000 Year 4 1/5 220,000 44,000 176,000 64,000 Year 5 1/5 220,000 44,000 220,000 20,000 Computations: Asset cost: $224,000 + $700 + $100 + $12,100 + $3,100 = $240,000 Straight-line: ($240,000 - $20,000) / 5 years = $44,000 Units-of-Production Depreciation Schedule Depreciation for the Year ASSET DEPRECIATION NUMBER DEPRECIATION ACCUMULATED BOOK DATE COST PER UNIT OF UNITS = EXPENSE DEPRECIATION VALUE Year 0 $240,000 $240,000 Year 1 $1.10 50,000 $ 55,000 $ 55,000 185,000 Year 2 1.10 45,000 49,500 104,500 135,500 Year 3 1.10 40,000 44,000 148,500 91,500 Year 4 1.10 35,000 38,500 187,000 53,000 Year 5 1.10 33,000 220,000 20,000 30,000 Computations: Units-of-production: ($240,000 - $20,000) / 200,000 units = $1.10/kilometer Double-Declining-Balance Depreciation Schedule Depreciation for the Year DATE Year 0 ASSET DDB COST DEPRECIATION RATE $240,000 BOOK VALUE = DEPRECIATION ACCUMULATED EXPENSE DEPRECIATION BOOK VALUE $240,000 Year 1 0.40 $240,000 $ 96,000 $ 96,000 144,000 Year 2 0.40 144,000 57,600 153,600 86,400 Year 3 0.40 86,400 34,560 188,160 51,840 Year 4 0.40 51,840 20,736 208,896 31,104 11,104 220,000 20,000 Year 5 Computations: DDB rate: (1/5 years 2) =.40 Depreciation for Year 5: $31,104 - residual value of $20,000 = $11,104 2. Jose Rojo, Inc. Prepares financial statements using the depreciation method that reports the highest income in the early years of asset use. For income tax purposes the company uses the depreciation method that minimizes income taxes in the early years. Consider the first year Jose Rojo inc, uses equipment. Identify the depreciation methods that meet Jose Rojo's objectives, assuming the income tax authorities permit the use of any method